In our last article, we had given information of the Car Insurance as well the types of Car Insurance. This article gives you an idea as to how important Car Insurance is in this present era. No wonder Government has made it a mandatory requirement and it is our duty to ensure that we get car insurance along with the car. Not just the importance, but also the consequences that is likely to be faced in the absence of car insurance is mentioned below.
Car insurance particularly third party liability is a must in India. You also need to take own damages cover as an accident can cost you several thousands in repairs. Try to avail the no claim bonus on your car insurance policy.
Third party motor liability insurance is compulsory in India. If your car causes damage and destruction to another’s vehicle or injury to a third party unrelated to you then you have to pay for injury and damages. A comprehensive motor insurance also covers damages to your car and injuries you suffer in an accident. Having a car insurance policy guarantees protection to your vehicle (pays in case of an accident) and medical expenses for injury. If you have not made any claims in the year you have a no claim bonus. You can get a discount of your premiums or a higher coverage.
Ravi and Suraj both friends purchased hatchback cars on the same day. Ravi took a comprehensive motor insurance policy whereas Suraj took only a third party liability policy.
After heavy rains one night both of them met with an accident. Ravi and Suraj cars were severely damaged in the accident. Ravi had a comprehensive car insurance policy whereas Suraj had only third party liability.
Since both the cars suffered accidents where no third party was injured Suraj third party liability was of no use as own damages were not covered under the policy.
Ravi comprehensive policy also covers damages suffered to his vehicle and he was reimbursed the loss he suffered.
Let’s have a look at the consequences that might be faced for not having insurance
We believe that you realize the importance of car insurance and preparing to get one in case you do not have. IndianMoney.com has a vertical by name Insurance which will help you to compare the car insurance among various insurance companies. We advise you to compare the products and choose the best according to your needs. For any queries please feel free to contact IndianMoney.com.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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